AI inference startup Fal raised $1.3 billion in a Series F round led by Bessemer Venture Partners, with participation from Nvidia, Sound Ventures, and T. Rowe Price, valuing the company at $16 billion — double its $8 billion valuation in April1,2.
Fal announced its Series E and Series F rounds together, reporting a combined $1.65 billion raised across both, with Sequoia leading the earlier round. The San Francisco-based company hosts and runs AI video, image, and audio models for creators and developers. A source told Bloomberg that Fal surpassed $800 million in annualized revenue earlier this year.
The round comes as demand for inference services — running already-trained AI models to generate outputs — grows among customers relying on open-source models. Competitors including Baseten, Fireworks AI, and Modal have also raised large rounds at rising valuations, though gross margins across inference providers remain thin because of the high cost of buying or leasing compute, according to people familiar with the companies' financials.
Fal was co-founded in 2021 by Burkay Gur, a former Coinbase machine learning leader and Oracle engineer, and Gorkem Yurtseven, previously a developer at Amazon.